Can my employer suspend me while they investigate me in New Zealand?

The Court of Appeal in Birss v Secretary for Justice [1984] 1 NZLR 513 described suspension as a drastic measure that, if more than momentary, has a devastating effect on the employee. That is why the good faith duty and the section 103A test in the Employment Relations Act 2000 apply to a suspension just as they apply to a dismissal.

The practical rules are simple. Your employer needs a contractual power to suspend or your agreement, and suspension must be on full pay unless the agreement expressly allows otherwise.

You must be told the reasons and given a genuine chance to respond first. If any of that is missing, you have 90 days to raise a personal grievance under section 114 of the Act.

Does my employer have the right to suspend me at all?

Not automatically. Suspension is a unilateral change to your terms of employment, so the employer needs a legal basis for it.

The cleanest basis is an express suspension clause in your employment agreement or an incorporated disciplinary policy. Most larger Wellington employers, and virtually all public sector agencies, have one. Read it carefully: it will say when suspension is permitted and on what terms.

If there is no clause, the employer must obtain your agreement to a period of paid leave, or fall back on the narrow category of unusual cases. The Employment Court has indicated (see Hall v Dionex Pty Ltd [2015] NZEmpC 29) that, absent a contractual right, suspension is only likely to be justified in unusual cases where it is genuinely necessary to protect health and safety, prevent interference with witnesses or evidence, or preserve the integrity of the investigation.

MBIE’s Employment New Zealand guidance puts it plainly: suspension is a drastic measure that should not be lightly undertaken, and it should not be used as a disciplinary tool.

Can I be suspended without pay in New Zealand?

Almost never. MBIE’s guidance is direct: any suspension should be on full pay, and suspension without pay can only be considered if it is specifically provided for in the employment agreement. Even where a clause exists, the employer must still follow a fair process and justify the decision under section 103A.

Ritchies Transport Holdings Ltd v Merennage [2015] NZEmpC 198 is the cautionary tale: a driver suspended without pay for over a year, then dismissed. The Employment Court found the dismissal unjustified and awarded the driver $15,000 compensation plus lost wages. The case is a standing reminder that lengthy unpaid suspension is very hard to defend.

If your pay has been stopped, ask in writing for the contractual basis and when pay will resume. An unconvincing answer can found a personal grievance on its own.

Does my employer have to consult me before suspending me?

Yes. The good faith duty in section 4 of the Employment Relations Act 2000 requires an employer to be active and constructive in communicating with you, and section 103A asks what a fair and reasonable employer could have done. Both point the same way: you must be told what is proposed and why, and be given a real opportunity to respond, before the decision is made. A fair process looks like this:

• Written notice: the employer sets out the concerns and why suspension is thought necessary, and invites your response.
• Opportunity to respond: you get a reasonable, if short, chance to comment and to propose alternatives such as working from home or paid special leave.
• Written decision and review: the outcome, its terms (pay, contact, duration, review dates) and the expected timeframe are confirmed in writing, and the suspension is lifted as soon as it is no longer needed.

The only exception is a genuine emergency, such as a safety-sensitive worker who appears impaired, and even then consultation should follow as soon as possible. A “suspended effective immediately” meeting with no chance to respond is the most common defect we see.

How long can a suspension last?

Only as long as the investigation genuinely requires. There is no statutory maximum, but the courts assess duration as part of the justification test, and open-ended suspensions are a disadvantage in their own right. A well-run investigation should take weeks, not months; if yours passes the four-week mark with no end in sight, ask in writing for a timetable and a review.

What should I do if I have been suspended?

Being walked out of the building is humiliating, and the first instinct is usually to fight or to quit. Neither helps. Do not resign, and do not go quiet: resigning converts a strong disadvantage grievance into a much harder constructive dismissal claim, and silence lets the employer’s version set the narrative. Instead:

1. Ask for the allegations in writing. You are entitled to know what you are accused of, in enough detail to respond, and to see the evidence relied on.
2. Ask for the contractual basis. Get written confirmation the suspension is on full pay.
3. Bring a support person or representative to every meeting. A lawyer or union representative can slow a rushed process down.
4. Keep records. Save every email and letter, note every conversation, and keep copies of your agreement and any policies.
5. Comply with the suspension terms while recording in writing that you do not accept it is justified.
6. Tell the truth in the investigation. As the Court of Appeal has made clear, lying in a disciplinary interview can justify dismissal even where the original allegation would not have.
7. Take advice early. The best time to involve a lawyer is before the investigation meeting, not after the outcome letter.

If the suspension itself is unjustified, you can raise a personal grievance for unjustified disadvantage under section 103(1)(b) of the Employment Relations Act 2000. You do not have to wait for the investigation to finish. Our guide on how to raise a personal grievance with your employer explains the mechanics, and our page on what to do this week if you have been suspended pending an investigation walks through the immediate steps. Compensation for the distress of an unjustified suspension is assessed in bands: see compensation for humiliation, loss of dignity and injury to feelings.

What is the deadline for raising a personal grievance about a suspension?

You have 90 days from the date the suspension took effect, or from when you became aware of it, to raise a personal grievance under section 114 of the Employment Relations Act 2000. You raise it by telling the employer, in writing, that you have a grievance and what it is about. Late grievances need the employer’s consent or leave from the Employment Relations Authority, and leave is not easily given.

Because suspension is often the first step in a process that ends in dismissal, raise the disadvantage grievance early. It preserves your position and can be resolved at MBIE mediation in Wellington with everything else.

Has the Employment Relations Amendment Act 2026 changed any of this?

The core rules have not changed. The Employment Relations Amendment Act 2026, in force from 21 February 2026, did not create a right to suspend, authorise unpaid suspension, or remove the unjustified disadvantage grievance. That right survives even for employees earning $200,000 or more, who lost the right to claim unjustified dismissal under the new high-income threshold.

Three changes matter at the edges. Section 103A(5), as amended by the 2026 Act to drop the word “minor”, means a dismissal will not be found unjustified solely because of process defects that did not actually cause unfairness. Sections 123B and 123C mean that if your own conduct contributed to the situation, remedies can be cut back, and if it amounted to serious misconduct there will be no remedy at all. And section 103A(3)(e) now expressly allows the Authority to consider whether an employee obstructed or frustrated the employer’s process: one more reason to engage.

Read our full analysis of the Employment Relations Amendment Act 2026 for the detail.

“Suspension is where most disciplinary processes are won or lost, on both sides. Employers who suspend reflexively, without a clause and without hearing from the employee, hand the employee a grievance before the investigation has even started. Employees who resign or refuse to engage give away their strongest position. My advice to both is the same: slow down, put it in writing, and get advice before the first meeting, not after the outcome.” Andy Bell, Partner, Lane Neave (Legal 500 Asia Pacific Recommended Lawyer; Doyle’s Guide Recommended Employment Lawyer 2026)

For employers: how do you suspend an employee properly?

The lawful path is simple but unforgiving of shortcuts.

Any hint that suspension signals a predetermined outcome will infect the whole process. Our employer services pages set out how we support Wellington employers through disciplinary processes and investigations.

Key takeaways

• No automatic right: an employer needs a contractual power to suspend or the employee’s agreement, except in genuinely unusual cases of necessity.
• On pay, after consultation, and short: unpaid suspension is only possible where the agreement expressly allows it; the employee must hear the reasons and respond before the decision; and the suspension must be lifted as soon as it is not needed.
• Do not resign, and do not go quiet: ask for the allegations and the contractual basis in writing, bring a support person, keep records, and take advice early. You have 90 days to raise a grievance.

Frequently Asked Questions

Is being suspended from work the same as being fired?

No. Suspension means you remain employed but are told not to attend work, usually while an investigation takes place. You keep your job, your entitlements and (almost always) your pay. It is not a finding of guilt and is not a disciplinary penalty in itself.

Can I be suspended without being told why?

No. Good faith and the section 103A test require your employer to tell you the concerns and why suspension is proposed, and to let you respond before deciding. Being suspended with no explanation and no chance to comment is a common ground for an unjustified disadvantage grievance.

Do I still get paid while suspended in New Zealand?

Yes, in almost every case. Suspension should be on full pay, and suspension without pay is only possible where your employment agreement specifically allows it. Even where a clause exists, the employer must still justify the decision as fair and reasonable.

Can I raise a personal grievance for the suspension itself, even if I am not dismissed?

Yes. An unjustified suspension is an unjustified disadvantage under section 103(1)(b) of the Employment Relations Act 2000 and can be raised as a personal grievance in its own right within 90 days. You do not need to wait for the investigation to conclude.

Andy Bell is a Partner at Lane Neave, an employment lawyer acting for employees and employers in Wellington and nationally. He is a Recommended Lawyer in the Legal 500 Asia Pacific and a Recommended Employment Lawyer in Doyle’s Guide 2026.

Last updated: 17 August 2026